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XVII

citizens, workers, and parents. This reform also is difficult to bring into operation until an increased supply of trained teachers is available; but upon the return our troops this should to some extent be mitigated. The services for promoting the health and the physical development of the pupils of primary schools are being gradually extended as opportunity permits. By reason of conditions developing, the question of further steps being taken to promote child-welfare is receiving earnest consideration. Special Schools. During the year reforms have been made in the system relating to destitute, delinquent, and uncontrollable children and juvenile offenders, and, apart from the improvements effected in the methods of dealing with these children, substantial savings have been made not only in regard to current maintenance, but also in capital expenditure. By the extension of the probation system ,to the four centres of population, and by extending the boarding-out system and the system of placing children in situations, it has been possible to close two institutions and to reduce considerably the numbers maintained at five others, with an increase rather than a decrease in the educational benefits. The closing of a third institution, one of those last mentioned, is now under consideration. In spite of the facts that the cost of living has gone up and that allowances for boarding oixt children have had to be increased, also that buildings have had to be improved at a time when the expense has been high, the saving effected under the new conditions for the year ending the 31st March last amounted to several thousands of pounds. There are indications that, owing to various causes and conditions that are developing, this branch of the Department will have to asstime increasing obligations in the near future. Teachers' Superannuation Fund. The fund amounted on the 31st December, 1917, to £420,225, as compared with £381,158 on the 31st December, 1916. During the year 1917 allowances totalling £5,049 per annum were granted, the total annual rate at the end of the year being £47,479. The number of contrikmtors on the same date waa 4,792. Hitherto the moneys of the fund have been invested in the Common Fund of the Public Trust Office, the rate of interest received, including the annual bonus granted by that Office, averaging about 4-63 per cent. In view of the higher rates of interest now current it was considered that a better return could be obtained by providing for separate control of the investments. Arrangements to this effect, >v »which were approved by Government, were made by the Teachers' Superannuation Board and the Public Trustee, and have been in operation since the Ist July last. On that date the fund amounted to £444,237, and of that sum £319,765 is invested in securities returning interest at 5j per cent. Of the balance, £59,824 is invested at 4| per cent., £26,161 at 5 per cent., and £38,460 at 5| per cent. BOARD OF TRADE. The Board of Trade, constituted under the Cost of Living Act, 1915, has continued to do important work throughout the year. The Board has brought into operation a scheme of Government control over the 1917-18 wheat crop : a maximum price was fixed, and its sale, distribution, and purchase governed. The scheme entirely eliminated speculation in our main cereal-food supply, and ensured an equitable distribution of wheat to millers. As a necessary corollary to this control, maximum prices were fixed for flour, bread, bran, and pollard. The scheme has worked satisfactorily. The excellent arrangement made with the Sugar Company has been continued for another year with an increase of 10b. per ton, the company undertaking to supply New Zealand's needs. At the price arranged, retailers are enabled to supply New Zealand consumers with sugar at a very low price in comparison to the price obtained in other countries. Following the legislation, which was passed last Tsession with a view to preventing any increase in the price of commodities except with the consent of the Board of Trade, an arrangement was entered into between the Board and the wholesale grocery merchants by"which fifty-seven commodities in general household use are controlled. To avoid the necessity of constantly gazetting maximum prices (which were subject to frequent and rapid changes) the merchants concerned agreed that, before advances in prices were made, full justification for

iii—B. 6.